Below we present key information from Water NSW’s pricing proposal for customers in the Fish River Water Supply Scheme (Fish River Scheme). This information is not exhaustive and should be viewed in conjunction with our Issues Paper.

Proposed costs for the Fish River Scheme

The costs proposed by Water NSW are higher than we used to set prices in the 2017 Determination:

  • Proposed customer share of operating expenditure for Fish River Scheme has increased by 66%
  • Proposed customer share of capital expenditure for Fish River Scheme has increased by 1%.

Offsetting these increases, the proposed cost of capital has decreased from 3.1% to 1.7%.

Proposed customer share of revenue requirement for Fish River Scheme over 2021 Determination

Note: UOM is the "unders and overs mechanism" balance from the 2014-17 regulatory period.
Data source: Water NSW proposal and IPART analysis.

What is driving the change in costs in the Fish River Scheme since 2017?

Data source: Water NSW proposal and IPART analysis

Proposed prices for the Fish River Scheme

Water NSW has proposed prices that recover the revenue required for 2020-21 (indexed by 1%), using updated entitlement and usage forecasts, instead of basing them on its proposed costs from 2021-22. Water NSW’s proposed prices under-recover its proposed 2021-22 costs by around 12% for the Fish River Scheme.

Under the Australian Competition and Consumer Commission (ACCC) rules, we are required to set prices for Water NSW that recover its full efficient costs of providing its bulk water services (net of any government contributions). Given the cost increases proposed by Water NSW, prices must increase by more than proposed by Water NSW to achieve Full Cost Recovery (FCR).

The table below sets out Water NSW’s proposed prices, as well the indicative prices that would recover Water NSW’s proposed costs over both a 1 and 4 year FCR basis.

Charges for the Fish River Scheme ($2020-21)

Current 2020-21

Proposed 2021-22

1 year FCR 2021-22

4 year FCR 2021-22

Change current to proposed

Change current to 1 year FCR

Change current to 4 year FCR

BULK RAW WATER

Minimum Annual Quantity (MAQ) ($/kL)

Energy Australia

$0.42

$0.42

$0.48

$0.49

-0.5%

14.3%

16.7%

Oberon Council

$0.42

$0.42

$0.48

$0.49

-0.5%

14.3%

16.7%

Individual Minor Customers

$84.00

$83.59

$96.00

$98.00

-0.5%

14.3%

16.7%

Usage up to MAQ ($/kl)

Energy Australia

$0.26

$0.16

$0.19

$0.19

-36.8%

-26.9%

-26.9%

Oberon Council

$0.26

$0.16

$0.19

$0.19

-36.8%

-26.9%

-26.9%

Individual Minor Customers

$0.26

$0.16

$0.19

$0.19

-36.8%

-26.9%

-26.9%

Usage in excess of MAQ ($/kL)

Energy Australia

$0.68

$0.58

$0.67

$0.68

-14.4%

-1.5%

0.0%

Oberon Council

$0.68

$0.58

$0.67

$0.68

-14.4%

-1.5%

0.0%

Individual Minor Customers

$0.68

$0.58

$0.67

$0.68

-14.4%

-1.5%

0.0%

BULK FILTERED WATER

Minimum Annual Quantity (MAQ) ($/kL)

Lithgow Council

$0.68

$0.74

$0.78

$0.79

8.8%

14.7%

16.2%

Individual Minor Customers

$164.00

$147.95

$188.00

$190.00

-9.8%

14.6%

15.9%

Usage up to MAQ ($/kl)

Lithgow Council

$0.39

$0.31

$0.29

$0.29

-19.6%

-25.6%

-25.6%

Individual Minor Customers

$0.50

$0.31

$0.37

$0.37

-37.3%

-26.0%

-26.0%

Usage in excess of MAQ ($/kL)

Lithgow Council

$1.07

$1.05

$1.07

$1.08

-1.6%

0.0%

0.9%

Individual Minor Customers

$1.32

$1.05

$1.31

$1.32

-20.2%

-0.8%

0.0%

Source: Water NSW proposal and IPART analysis.

Proposed bills for the Fish River Scheme

The table below shows Water NSW’s proposed bills for 2021-22, as well as the indicative bills arising from FCR prices under its cost proposal over 1 and 4 years.

Proposed bills for Fish River Scheme ($2020-21)

Current 2020-21

Proposed 2021-22

1 year FCR 2021-22

4 year FCR 2021-22

Change current to proposed

Change current to 1 year FCR

Change current to 4 year FCR

Raw Water

Energy Australia

$3,837,940

$4,267,602

$4,908,152

$4,989,992

11.2%

27.9%

30.0%

Oberon Council

$631,220

$557,437

$641,124

$651,764

-11.7%

1.6%

3.3%

Individual Minor Customers

$405

$353

$407

$413

-12.7%

0.5%

2.0%

Filtered water

Lithgow Council

$1,546,780

$1,576,044

$1,628,038

$1,645,818

1.9%

5.3%

6.4%

Individual Minor Customers

$663

$479

$596

$601

-27.7%

-10.0%

-9.4%

Source: Water NSW proposal and IPART analysis.

The indicative bills shown below are based on Water NSW’s proposed prices for its bulk water services.

Bills for Lithgow Council in Fish River Scheme

Data source: Water NSW proposal and IPART analysis

Bills for Individual minor filtered water customers in Fish River Scheme

Data source: Water NSW proposal and IPART analysis

Bills for Oberon Council in Fish River Scheme

Data source: Water NSW proposal and IPART analysis

Bills for Individual minor raw water customers in Fish River Scheme

Data source: Water NSW proposal and IPART analysis

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